HDFC Bank addresses report on MD & CEO Sashidhar Jagdishan extension

HDFC Bank Ltd on Thursday denied a media report suggesting the private lender discussed an extension for Sashidhar Jagdishan as MD & CEO. In an afternoon conference call, it said no such discussion on reappointment took place so far.  Addressing a question, Jagdishan said: "I have not expressed this kind of a feeling to anyone, either to my own self or to the board."

Sashi, as he's known to his friends and colleagues, joined HDFC Bank in 1996. Out of his 30 years of experience, Jagdishan has spent 27 years at HDFC Bank. Prior to HDFC Bank, he worked with Deutsche Bank AG, Mumbai, for a period of three years. He assumed office on October 27, 2020.

CNBC-TV18 had earlier quoted sources as saying that the lender was looking to seek Jagdishan's extension after his current term ends in October, as it sought leadership continuity amid a wave of senior-level changes.

The report further suggested that the bank board had already persuaded Jagdishan to continue in the role, saying the Reserve Bank of India (RBI) too was keen on his continuation

An HDFC Bank spokesperson said the bank's Nomination and Remuneration Committee (NRC) will first discuss the matter (Jagdishan's extension) between itself and bring it to the board, but for now there has been no such discussions.The bank clarified that the RBI did not flag any issues related to the bank. Keki Mistry said Atanu Chakraborty had "no particular issues". He said he was not keen on being part-time chairman beyond three months.

The comments came as Keki Mistry replaced Atanu Chakraborty, who resigned as part-time Chairman and Independent Director. Mistry assumed the role with effect from March 19, 2026, for three months.

Earlier today, HDFC Bank said Chakraborty's resignation was not due to any regulatory issues and that there are no material matter or specific issues seen regarding bank operations. After hitting a low of Rs 772, HDFC Bank shares eventually closed at Rs 799.70, down 5.13 per cent.

"Near-term underperformance may remain, While fundamentals remain strong with good ROA, at this point in time governance concerns will weigh down heavily on the stock. Investors would want more comfort from the board. Also now the uncertainty surrounding Sashi's reappointment will weigh down on the stock," Macquarie said in a flash note.